The Straits Times / The Business Times News on Cosco

Cosco unit wins US$74m contract

A Subsidiary of Cosco Corp (Singapore), Cosco Shipyard Group (CSG), has clinched Floating Storage and Offloading unit (FSO) building and conversion contracts totalling US$74.8 million, including its first for its Zhoushan shipyard in China.

The announcement comes soon after China's largest shipyard group said it was pumping in US$113 million to expand three of its seven shipyards, boosting its capacity by 28 per cent within a year.

Singapore listed Cosco Corp (Singapore) and SembCorp Marine hold 51 per cent and 30 per cent stake respectively in CSG which is expanding capacity at its Zhoushan, Nantong and Guangzhou yards.

The contract to build a 52,000 dwt FSO, the storage facility of an oil rig, marks the group's entry into the lucrative offshore engineering market.

'The FSO contract is a vote of confidence for the shipyard group and we won the job against very competent and experienced shipbuilders in collaboration with our Singapore partner SembCorp Marine,' said Cosco Corp president Ji Hai Sheng, who is also vice-chairman of the shipyard group.

Singapore listed Cosco Corporation is the subsidiary of China Ocean Shipping (Group) Co, China's largest shipping group.